Study Guide Midterm II
Study Guide Midterm II ACC 201
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This 0 page Study Guide was uploaded by Petey Martin on Saturday November 7, 2015. The Study Guide belongs to ACC 201 at University of Rochester taught by WOJDAT K in Summer 2015. Since its upload, it has received 80 views. For similar materials see FINANCIAL ACCOUNTING in Accounting at University of Rochester.
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Date Created: 11/07/15
Petey Martin Outline ACC 201 Midterm II Study Guide 0 Chapter 6 Introductory Accounting 0 Chapter 7 Introductory Accounting 0 Chapter 8 Introductory Accounting 0 Chapter 9a Introductory Accounting Review 0 Chapter 6 0 Revenue or Sales is an important component of the income statement 0 Timing of revenue recognition is critical to fair presentation of reported annual revenue 0 The amount recognized as Revenue or Sales is the cash equivalent sales price 0 Sales to Businesses 0 Retail Sales to Customers 0 Net Sales is a term referring to 0 Gross margins 0 Accounts Receivable 0 Accounts Receivable Records 0 Bad Debts 0 Aging of accounts receivable method of estimating bad debtexpense 0 Percentage of credit saes method of estimating bad debt expense 0 Accounting for actual write off of amount due from a speci c customer 0 Accounts receivable allowance for doubtful accounts and bad debt expense are all interrelated o Receivables and Cash 0 Cash 0 Cash management responsibilities include 0 Internal controls and cash 0 Bank Reconciliation Chapter 7 0 Inventory is goods available to be sold in normal course of business as well as the components used to make goods for sale 0 Manufacturing rms have three categories of inventory 0 Purpose of inventory records 0 Inventory calculations affect both the balance sheet and the income statement 0 Calculating accounting value of ending inventory 0 Inventory is initially valued at cost under the cost principle 0 Units in inventory technically include all units the rm legally owns 0 Accounting for variation in acquisition cost 0 Cost Flow Assumptions 0 Compare Ending Inventory value under FIFO to that under LIFO 0 Compare FIFO to LIFO Net income 0 LIFO based statements can be converted to FIFO based statements using data presented in the nancial statements 0 Errors in calculating inventory value 0 Lower of Cost or market 0 Ratio analysis 0 Perpetual vs Periodic Inventory 0 Internal controls of inventory should include a number of steps 0 Chapter 8 0 Operating assets are longlived assets that give a rm its productive capacity and ability to conduct business o Accounting for operating assets entails recording the initial expenditure as an asset and then allocating the asset s Lst as an expense to a number of accounting periods 0 Recording acquisition of plant property and equipment 0 Under the cost principle capitalized expenditures additions to asset accounts include all expenditures necessary to acquire a longlived asset to bring the asset to the location in which it will be used and to prepare the asset for its use 0 Basket Purchase Capital expenditure for a group of assets 0 Recording expenditures related to assets already in service 0 Depreciation 0 Straight line depreciation allocates an equal part of depreciable cost to expense each year over the asset39s estimated economic life 0 Declining Balance Depreciation 0 Units of Production Depreciation allocates the depreciable cost equally to each unit the asset is expected to help produce over its life 0 Comparison of straightline to accelerated depreciation 0 Issues regarding choice of method 0 For each asset the method used for nancial statement purposes need not be the same as that used for tax purposes 0 Accounting for a change in estimate 0 Asset Impairment o Disposing of an asset O O O 0 Natural resources and depletion Intangible assets no physical form Intangible assets with De nite Lives Intangible Assets with Inde nite Lives 0 Chapter 9a 0 00000 Interest Future Value and Present Value Calculating the Future Value of a single amount Present value of a single amount Present Value of an ordinary annuity Present Value of an ordinary annuity and single amount combined
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